The main kinds of coinage are; Free coinage: Coinage is said to be free of the people are allowed to take metals to the mint for being converted into standard coins without limit. Before, 1933, in America, U.K. And Japan, and the system of free coinage was prevalent. In undivided India before 1893, people could take silver to the mint and it converted into standard coins without any limit. Limited coinage: Coinage is said to be limited when the metal is converted into coins at the option of the state. The government judging the currency requirements of the country freely allows the standard money metal to be converted into coins but limited is imposed on free coinage of other metals. Government also sometime charges fee for converting the metals into coins. The face value of limited coins is higher than its intrinsic value. They are accepted as a medium of exchange because they are convertible into standard coins. Gratuitous coinage: If in the currency system of free coinage, government does not charge any fee for minting coins, the coinage is said to be gratuitous. Gratuitous coinage is practised when the intrinsic of bullion is to be brought at par with its face value.
